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Copyright © Cognitior www.cognitior.com
State Age Salary Purchase
California 21 21000 No
Texas 25 25000 No
Arizona 23 25000 Yes
Utah 33 30000 Yes
California 45 35000 Yes
California 25 23000 No
Texas 26 27000 Yes
Arizona 27 29000 No
Texas 30 32000 No
Texas 32 31000 Yes
Utah 33 35000 Yes
Utah 34 40000 Yes
Texas 36 42000 Yes
Texas 34 35000 No
Copyright © Cognitior www.cognitior.com
LabelEncoding
State Age Salary Purchase
1 21 21000 No
2 25 25000 No
0 23 25000 Yes
3 33 30000 Yes
1 45 35000 Yes
1 25 23000 No
2 26 27000 Yes
0 27 29000 No
2 30 32000 No
2 32 31000 Yes
3 33 35000 Yes
3 34 40000 Yes
2 36 42000 Yes
2 34 35000 No
State_1 State_2 State_3 State_4 Age Salary Purchase
0 1 0 0 21 21000 No
0 0 1 0 25 25000 No
1 0 0 0 23 25000 Yes
0 0 0 1 33 30000 Yes
0 1 0 0 45 35000 Yes
0 1 0 0 25 23000 No
0 0 1 0 26 27000 Yes
1 0 0 0 27 29000 No
0 0 1 0 30 32000 No
0 0 1 0 32 31000 Yes
0 0 0 1 33 35000 Yes
0 0 0 1 34 40000 Yes
0 0 1 0 36 42000 Yes
0 0 1 0 34 35000 No
State Age Salary Purchase
1 21 21000 No
2 25 25000 No
0 23 25000 Yes
3 33 30000 Yes
1 45 35000 Yes
1 25 23000 No
2 26 27000 Yes
0 27 29000 No
2 30 32000 No
2 32 31000 Yes
3 33 35000 Yes
3 34 40000 Yes
2 36 42000 Yes
2 34 35000 No
Copyright © Cognitior www.cognitior.com
OneHotEncoding
𝑦 = 𝑚1 𝑥1 + 𝑚2 𝑥2 + 𝑚3 𝑥3 𝑦 = 𝑚 𝐷1 𝐷1 + 𝑚 𝐷2 𝐷2 + 𝑚 𝐷3 𝐷3 + 𝑚 𝐷4 𝐷4 + 𝑚2 𝑥2 + 𝑚3 𝑥3
Copyright © Cognitior www.cognitior.com
DummyVariableTrap
Multicollinearity
State_2 State_3 State_4 Age Salary Purchase
1 0 0 21 21000 No
0 1 0 25 25000 No
0 0 0 23 25000 Yes
0 0 1 33 30000 Yes
1 0 0 45 35000 Yes
1 0 0 25 23000 No
0 1 0 26 27000 Yes
0 0 0 27 29000 No
0 1 0 30 32000 No
0 1 0 32 31000 Yes
0 0 1 33 35000 Yes
0 0 1 34 40000 Yes
0 1 0 36 42000 Yes
0 1 0 34 35000 No
State Age Salary Purchase
1 21 21000 No
2 25 25000 No
0 23 25000 Yes
3 33 30000 Yes
1 45 35000 Yes
1 25 23000 No
2 26 27000 Yes
0 27 29000 No
2 30 32000 No
2 32 31000 Yes
3 33 35000 Yes
3 34 40000 Yes
2 36 42000 Yes
2 34 35000 No
Copyright © Cognitior www.cognitior.com
DummyVariableTrap
𝑦 = 𝑚1 𝑥1 + 𝑚2 𝑥2 + 𝑚3 𝑥3 𝑦 = 𝑚 𝐷2 𝐷2 + 𝑚 𝐷3 𝐷3 + 𝑚 𝐷4 𝐷4 + 𝑚2 𝑥2 + 𝑚3 𝑥3
ThankYou!!!
AnyQuestions?
support@cognitior.com
Copyright © Cognitior www.cognitior.com

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Encoding

  • 2. State Age Salary Purchase California 21 21000 No Texas 25 25000 No Arizona 23 25000 Yes Utah 33 30000 Yes California 45 35000 Yes California 25 23000 No Texas 26 27000 Yes Arizona 27 29000 No Texas 30 32000 No Texas 32 31000 Yes Utah 33 35000 Yes Utah 34 40000 Yes Texas 36 42000 Yes Texas 34 35000 No Copyright © Cognitior www.cognitior.com LabelEncoding State Age Salary Purchase 1 21 21000 No 2 25 25000 No 0 23 25000 Yes 3 33 30000 Yes 1 45 35000 Yes 1 25 23000 No 2 26 27000 Yes 0 27 29000 No 2 30 32000 No 2 32 31000 Yes 3 33 35000 Yes 3 34 40000 Yes 2 36 42000 Yes 2 34 35000 No
  • 3. State_1 State_2 State_3 State_4 Age Salary Purchase 0 1 0 0 21 21000 No 0 0 1 0 25 25000 No 1 0 0 0 23 25000 Yes 0 0 0 1 33 30000 Yes 0 1 0 0 45 35000 Yes 0 1 0 0 25 23000 No 0 0 1 0 26 27000 Yes 1 0 0 0 27 29000 No 0 0 1 0 30 32000 No 0 0 1 0 32 31000 Yes 0 0 0 1 33 35000 Yes 0 0 0 1 34 40000 Yes 0 0 1 0 36 42000 Yes 0 0 1 0 34 35000 No State Age Salary Purchase 1 21 21000 No 2 25 25000 No 0 23 25000 Yes 3 33 30000 Yes 1 45 35000 Yes 1 25 23000 No 2 26 27000 Yes 0 27 29000 No 2 30 32000 No 2 32 31000 Yes 3 33 35000 Yes 3 34 40000 Yes 2 36 42000 Yes 2 34 35000 No Copyright © Cognitior www.cognitior.com OneHotEncoding 𝑦 = 𝑚1 𝑥1 + 𝑚2 𝑥2 + 𝑚3 𝑥3 𝑦 = 𝑚 𝐷1 𝐷1 + 𝑚 𝐷2 𝐷2 + 𝑚 𝐷3 𝐷3 + 𝑚 𝐷4 𝐷4 + 𝑚2 𝑥2 + 𝑚3 𝑥3
  • 4. Copyright © Cognitior www.cognitior.com DummyVariableTrap Multicollinearity
  • 5. State_2 State_3 State_4 Age Salary Purchase 1 0 0 21 21000 No 0 1 0 25 25000 No 0 0 0 23 25000 Yes 0 0 1 33 30000 Yes 1 0 0 45 35000 Yes 1 0 0 25 23000 No 0 1 0 26 27000 Yes 0 0 0 27 29000 No 0 1 0 30 32000 No 0 1 0 32 31000 Yes 0 0 1 33 35000 Yes 0 0 1 34 40000 Yes 0 1 0 36 42000 Yes 0 1 0 34 35000 No State Age Salary Purchase 1 21 21000 No 2 25 25000 No 0 23 25000 Yes 3 33 30000 Yes 1 45 35000 Yes 1 25 23000 No 2 26 27000 Yes 0 27 29000 No 2 30 32000 No 2 32 31000 Yes 3 33 35000 Yes 3 34 40000 Yes 2 36 42000 Yes 2 34 35000 No Copyright © Cognitior www.cognitior.com DummyVariableTrap 𝑦 = 𝑚1 𝑥1 + 𝑚2 𝑥2 + 𝑚3 𝑥3 𝑦 = 𝑚 𝐷2 𝐷2 + 𝑚 𝐷3 𝐷3 + 𝑚 𝐷4 𝐷4 + 𝑚2 𝑥2 + 𝑚3 𝑥3